8. Italy: Limited policy responses and industrial relations in flux, leading to aggravated inequalities (original) (raw)

Italy faced severe economic challenges due to the global financial crisis, leading to increased inequalities, particularly between the industrialized North and the less developed South. Limited and ineffective policy responses, particularly a lack of discretionary fiscal measures, exacerbated the impact on the labor market and income levels. The chapter analyzes the characteristics of the crisis, its effects on different worker demographics, the government's responses, and provides case studies on firms' strategies to cope with the downturn, ultimately exploring implications for future policy directions.